Core Scientific, a Texas-based Bitcoin mining company, announced that it will resume trading and return to Nasdaq on Wednesday as a result of a reorganization effort beyond 2022. file for bankruptcy.
the company said Tuesday name The restructuring plan reportedly allowed it to reduce $400 million in debt by converting debt from equipment lenders and convertible note holders into equity.
Core Scientific said it could further reduce its debt through conversion of remaining convertible notes, exercise of corresponding warrants by investors, and use of available cash to repay debt.
“We are ready to execute on a pragmatic growth plan, prepare for the upcoming halving, and create value by converting energy into high-value computing for Bitcoin mining and other potential applications,” Adam Sullivan, CEO of Core Scientific, said in a press release. “It is done,” he said. release
Core Scientific, which operates mining facilities across five U.S. states with 724 MW of power, plans to increase its total mining capacity by more than 50% over the next four years with plans to deploy new Bitcoin miners.
In December 2022, the company filed for Chapter 11 bankruptcy protection due to a slump in cryptocurrency prices and a series of market failures. Major creditors included BlackRock and investment bank B. Riley.
Share prices of Bitcoin mining companies Marathon Digital and Riot Platforms have risen this time in response to Bitcoin volatility since the United States approved a number of spot Bitcoin exchange-traded funds on January 10. The moon fell. Marathon Digital’s stock price fell 29.74% from the beginning of the month, and Riot Platforms also fell. 32.6% in the same period.
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
About the author
Danny Park is The Block’s East Asia reporter, writing about topics including Web3 development and cryptocurrency regulation in the region. He previously worked as a reporter for Forkast.News, where he actively covered the fall of Terra-Luna and FTX. Based in Seoul, Danny previously produced written and video content for media companies in Korea, Hong Kong and China. He holds a Bachelor’s degree in Journalism and Business Marketing from the University of Hong Kong.